2016 (6) TMI 1065

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....ules and its related IT Telecommunication equipment for use by various telecom service providers both within and outside India. The petitioner is a registered dealer on the file of the second respondent under the provisions of the TNVAT Act. For all the six years, which are subject matter of these Writ Petitions, the second respondent issued notices to the petitioners dated 31.08.2015, stating that they have purchased goods without payment of tax on the ground that they are located in a Special Economic Zone and furnishing the details of purchase value based on the Commodity and the rate of tax, it was stated that as per provision of Section 12 of the TNVAT Act, every dealer who purchases any goods from a registered dealer or from any other person the goods purchased without payment of tax for any reason, though these purchases are liable to tax under the TNVAT Act, are liable to pay tax on the turnover relating to the purchase at the rates specified in the schedule appended to the TNVAT Act. It was further stated that the goods mentioned were purchased by the petitioner with payment of tax by virtue of being located in SEZ warrants levy of purchase tax under Section 12 of the TNVA....

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....s repealed with effect from 01.01.2007 and thereafter, the levy of tax on the sale or purchase of goods is governed by the TNVAT Act. Therefore, unless the legislature had amended the TNSEZ Act by replacing TNGST Act with the phrase TNVAT Act in Section 12(1), concession cannot be granted and the concession granted ceases to exist the moment the TNGST Act was repealed. Further, the second respondent proceeded to make certain observations as regards the effect of the decision in the case of Torrent Energy Limited (supra). 4. These Writ Petitions were admitted and interim orders were granted and the respondents were directed to file counter affidavit. From the perusal of the counter affidavit, it is seen that the stand taken therein is by replicating the stand taken in the impugned order. When the matter was heard on the previous occasions, it was brought to the notice of the Court that the Government of Tamil Nadu had issued a notification in G.O.Ms.No.75, Commercial Taxes Department, dated 28.06.2005, in exercise of its powers under Section 17(1) of the TNGST Act read with Section 2(1)(b) of the Tamil Nadu Additional Sales Tax Act, 1970, granting exemption in respect of sales ta....

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....d. 8. As noticed above, the Government had issued a notification granting exemption as far back as 28.06.2005, making an exemption in respect of sales tax, surcharge, resale tax and additional sales tax payable by any dealer on the sale of any goods made by such dealer to a registered dealer for the purpose of setting up, operation, maintenance, manufacture etc., in a unit located in the Madras Special Economic Zones and other SEZ in the State of Tamil Nadu notified by the Government of India or for development, operation and maintenance of SEZ by the developer of the SEZ, if such dealer has been authorised to establish the unit within the SEZ or develop or operate, maintain such SEZ subject to two conditions namely, they have to furnish a certificate in the form appended in the notification duly countersigned by the SEZ authority and the goods purchased are used only for the above mentioned purpose. This amendment came to be notified in exercise of the powers under Section 17(1), as the Government had enacted the Tamil Nadu SEZ Act, Tamil Nadu Act 18 of 2005, which came into force on 08.08.2005. The only reason assigned by the respondent, Assessing Officer is by referring to Se....

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....ule or regulation framed or forms prescribed and any certificate, licence or permit granted in exercise of any power conferred by or under the said Act or 1970 Act, as the case may be, shall be valid and always as deemed to have been valid, during the period the said Act or 1970 Act, as the case may be was in force notwithstanding the repeal of the said Act or 1970 Act as the case may be. 10. By virtue of Section 87 of the Act, wherever there is any reference to TNGST Act i.e., in any Act, Rule, Notification proceedings, order or other instrument made or issued under TNGST Act shall be construed as reference to TNVAT Act. In terms of the proviso under Section 88(1), the repeal of the TNGST Act, shall not affect the previous operation of the said Act, as the case may be or any right, privilege, obligation or liability accrued or incurred thereunder. Further, in terms of Section 88(3)(i), all rules, regulations, notifications, clarifications or orders made or issued under any of the provisions of TNGST Act, or the additional sales tax act and continuing to be in force on the date immediately before the commencement of the TNVAT Act shall continue in force on or after such date ins....